Researchers have historically noted the importance of Dynamic Assessment and its effect on students’ language learning. DA offers teachers and learners vast opportunities for language teaching and learning. The present article can be considered as part of the recent trend in the field of language teaching. It attempts to describe Dynamic Assessment and review the literature on the effect of DA on language learning. It also describes different concepts related to DA and highlights the differences between the two approaches to DA. The article concludes that teachers’ mediation and intervention and students’ active involvement in the process of development can reduce and overcome the obstacles to learning.